Rate Futures Surge Amidst Bear Stearns Liquidity Rumors
Interest rate futures now fully factor in a 75bp cut on March 18 and show a 10% chance of a 100bp cut. Bear Stearns CEO Ace Greenberg has called the liquidity rumors “totally ridiculous.” Euro$ futures are also well bid with the June contract up to 97.74 from 97.681. Shares of Bear Stearns (BSC) are down nearly 13%.